# Collect tax in the United States Learn how to use Stripe Tax to calculate, collect, and report tax in the US. Businesses selling goods and services to customers in the United States (US) might need to collect sales tax, regardless of where the business is located. Tax rates and rules vary by region. You can [ask Stripe to register with local US tax authorities](https://docs.stripe.com/tax/use-stripe-to-register.md) on your behalf. ### Regions in the US Stripe can calculate tax in US states, the US capital, and US territories. To learn more about the location your business is based in and how to register for tax there, select a region from the following list. - [Alabama](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=alabama) - [Alaska](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=alaska) - [Arizona](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=arizona) - [Arkansas](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=arkansas) - [California](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=california) - [Colorado](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=colorado) - [Connecticut](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=connecticut) - [Delaware](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=delaware) - [District of Columbia](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=district-of-columbia) - [Florida](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=florida) - [Georgia](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=georgia) - [Hawaii](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=hawaii) - [Idaho](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=idaho) - [Illinois](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=illinois) - [Indiana](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=indiana) - [Iowa](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=iowa) - [Kansas](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=kansas) - [Kentucky](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=kentucky) - [Louisiana](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=louisiana) - [Maine](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=maine) - [Maryland](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=maryland) - [Massachusetts](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=massachusetts) - [Michigan](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=michigan) - [Minnesota](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=minnesota) - [Mississippi](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=mississippi) - [Missouri](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=missouri) - [Montana](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=montana) - [Nebraska](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=nebraska) - [Nevada](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=nevada) - [New Hampshire](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=new-hampshire) - [New Jersey](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=new-jersey) - [New Mexico](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=new-mexico) - [New York](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=new-york) - [North Carolina](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=north-carolina) - [North Dakota](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=north-dakota) - [Ohio](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=ohio) - [Oklahoma](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=oklahoma) - [Oregon](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=oregon) - [Pennsylvania](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=pennsylvania) - [Puerto Rico](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=puerto-rico) - [Rhode Island](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=rhode-island) - [South Carolina](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=south-carolina) - [South Dakota](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=south-dakota) - [Tennessee](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=tennessee) - [Texas](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=texas) - [Utah](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=utah) - [Vermont](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=vermont) - [Virginia](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=virginia) - [Washington](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=washington) - [West Virginia](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=west-virginia) - [Wisconsin](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=wisconsin) - [Wyoming](https://docs.stripe.com/tax/supported-countries/united-states/collect-tax.md?tax-jurisdiction-united-states=wyoming) ## When to register for tax collection Different rules determine when and how you need to register to collect tax depending on the region. US regions can choose which level and type of activity in the region means a business needs to collect tax there. This is called *nexus*. A business can have nexus in a region if they have: - Physical activity, such as having remote employees based there or storing inventory in a warehouse. - Economic activity, such as an amount or total value of transactions within a time period. If you have nexus in a US region, you need to register for a license to collect tax on sales to customers in that region. To understand the economic nexus thresholds in each region use the [links above](https://docs.stripe.com/tax/supported-countries/united-states.md#us-states). Stripe only monitors if you’ve reached an economic nexus tax threshold for sales outside of the region your business is based in. Learn more about [economic nexus](https://stripe.com/guides/introduction-to-us-sales-tax-and-economic-nexus). See [Thresholds](https://dashboard.stripe.com/tax/thresholds) to get insights about your potential tax registration obligations. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the [monitoring tool works](https://docs.stripe.com/tax/monitoring.md). See [Needs attention](https://dashboard.stripe.com/tax/locations?primary_tab=needs_attention) tab to get insights about your potential tax registration obligations. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the [monitoring tool works](https://docs.stripe.com/tax/monitoring.md). ## Register to collect tax If you’re a remote seller, [Stripe can register with the local tax authorities](https://docs.stripe.com/tax/use-stripe-to-register.md) for you. Each US state, US territory, and the US capital has its own tax authority. You need to individually register to collect sales tax in each region where you have met the registration requirements. Start by going to the regional tax authority website. If you need help finding the right links to register for tax, select a region from the [list above](https://docs.stripe.com/tax/supported-countries/united-states.md#us-states). You can also use [Stripe to register](https://docs.stripe.com/tax/use-stripe-to-register.md) on your behalf. Learn more about [the sales tax registration process in the United States](https://stripe.com/guides/sales-tax-registration-process-us). ### Streamlined Sales and Use Tax Agreement (SSUTA) The Streamlined Sales and Use Tax Agreement (SSUTA) was created by a coalition of states to help businesses manage their sales and use tax obligations across the United States. Twenty-four US states are members of the SSUTA agreement. However, individual states can still decide which products and services are taxable in their state. You can learn more and register for sales and use tax permits in all SSUTA member states on the [streamlined sales tax registration website](https://www.streamlinedsalestax.org/). After you’ve registered with a state, go to [Registrations](https://dashboard.stripe.com/tax/registrations?location=us) to add your registrations to Stripe in the Dashboard and start collecting tax on your transactions in that location. After you’ve registered with a state, go to [Locations](https://dashboard.stripe.com/tax/locations?location=us) to add your registrations to Stripe in the Dashboard and start collecting tax on your transactions in that location. ## How we calculate taxes What you sell and where you sell impacts how tax is calculated on your sales. Different rules apply when your customer is located in the same region as your business or located somewhere else. Stripe calculates tax on a transaction taking into account the following factors: - Your business location - Your Stripe Tax registrations - The Buyer’s location - The type of the product sold (based on which [product tax code](https://docs.stripe.com/tax/tax-codes.md) you assigned to your product) - The customer status (whether they’re an individual or a business) - A performance location (alternative address representing the point of exchange, such as an event venue or service fulfillment point) As part of the tax calculation process, Stripe collects addresses for both your business and customers. We verify these addresses, convert them into geographical coordinates, and match them to the relevant tax jurisdiction boundaries. We then use these jurisdictions as input for the tax calculation process. ### Sales to a customer located outside the state your business is based in If your [head office](https://docs.stripe.com/tax/set-up.md#head-office) is in the US and is different from the state or territory your customer is located in, Stripe always calculates tax based on your customer’s location. This also applies if either your head office or your customer’s location is in the District of Columbia while the other isn’t. ### Sales to a customer located within the same state as your business If your [head office](https://docs.stripe.com/tax/set-up.md#head-office) is in the US and in the same state or territory as your customer’s state or territory, Stripe generally calculates sales tax based on your customer’s location. The customer’s location is also used when your head office and your customer’s location are both in the District of Columbia. However some states use your head office address instead of the customer’s location depending on the type of product or service you sell: - In Arizona, Illinois, Missouri, Pennsylvania, Tennessee, and Virginia, Stripe applies tax based on your business location. - In California, state, county, and city taxes are based on the head office, while district taxes are based on the customer’s location. - In Mississippi, Ohio, Texas, and Utah, Stripe applies tax based on the head office for physical and digital goods. Sales of services are taxed at the destination address. ### Sales to US customers from abroad If your head office is outside the US and you sell goods or services to US customers, Stripe generally calculates sales tax based on your customer’s location. However, if you don’t have a tax registration in your customer’s US state, Stripe treats a cross-border sale of goods as a [zero-rated ](https://docs.stripe.com/tax/zero-tax.md#exempt-or-zero-rated-products) export in the country of your head office. ### Sales to a customer for an admission to an event or amusement Regardless of your head office and location of the customer, when a transaction references a relevant product tax code with a performance location address, Stripe applies tax based on the performance location. ## Optional: Sales tax holidays A sales tax holiday is a period of time when sales taxes don’t need to be collected or paid for some types of products. Stripe uses the [product tax code](https://docs.stripe.com/tax/tax-codes.md) you assigned to your product to understand if a sales tax holiday applies. Sales tax holidays are only relevant in the US. #### 2026 For the year 2026, Stripe Tax supports the following sales tax holidays in the United States: | Region | Sales tax holiday | Date range | | -------------- | ------------------------------------------------------------------------------------------------------------------------------- | ----------------------- | | Maryland | [Shop Maryland Energy Star](https://www.marylandtaxes.gov/divisions/comp/Shop_Maryland_Energy/Shop_Maryland_Energy_FAQs.pdf) | February 14—February 16 | | Alabama | [Severe Weather Preparedness](https://www.revenue.alabama.gov/sales-use/sales-tax-holidays/) | February 21—February 23 | | Missouri | [Show Me Green](https://dor.mo.gov/faq/taxation/business/show-me-green-tax-holiday.html) | April 19—April 25 | | Texas | [Emergency Preparation Supplies](https://comptroller.texas.gov/taxes/publications/98-1017.php) | April 25—April 27 | | Puerto Rico | Hurricane Season Preparedness | TBD | | Texas | [Energy Star](https://comptroller.texas.gov/taxes/publications/96-1331.php) | May 23—May 25 | | Texas | [Water-Efficient Products](https://comptroller.texas.gov/taxes/publications/98-1018.php) | May 23—May 25 | | Mississippi | Back to School | July 10—July 12 | | Alabama | [Back to School](https://www.revenue.alabama.gov/sales-use/sales-tax-holidays/) | July 17—July 19 | | Puerto Rico | Back to School | TBD | | New Mexico | [Back to School](https://www.tax.newmexico.gov/news-alerts/tax-holiday/) | July 31—August 2 | | Tennessee | [Back to School](https://www.tn.gov/revenue/taxes/sales-and-use-tax/sales-tax-holiday/sth-traditional.html) | July 31—August 2 | | Florida | [Back to School](https://floridarevenue.com/BacktoSchool/) | August 1—August 31 | | Iowa | [Back to School](https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/iowas-annual-sales-tax-holiday) | August 7—August 8 | | Missouri | [Back to School](https://dor.mo.gov/taxation/business/tax-types/sales-use/holidays/back-to-school/) | August 7—August 9 | | Oklahoma | [Back to School](https://oklahoma.gov/content/dam/ok/en/tax/documents/resources/publications/infographics/SalesTaxHoliday.pdf) | August 7—August 9 | | South Carolina | [Back to School](https://dor.sc.gov/taxfreeweekend) | August 7—August 9 | | Texas | [Back to School](https://comptroller.texas.gov/taxes/publications/98-490/) | August 7—August 9 | | Virginia | [Back to School](https://www.tax.virginia.gov/virginia-sales-tax-holiday) | August 7—August 9 | | Virginia | [Energy Star and WaterSense Products](https://www.tax.virginia.gov/virginia-sales-tax-holiday) | August 7—August 9 | | Virginia | [Hurricane and Emergency Preparedness](https://www.tax.virginia.gov/virginia-sales-tax-holiday) | August 7—August 9 | | West Virginia | [Back to School](https://tax.wv.gov/Business/Pages/SalesTaxHoliday.aspx) | August 7—August 10 | | Arkansas | Back to School | August 8—August 9 | | Massachusetts | [General](https://www.mass.gov/info-details/sales-tax-holiday-frequently-asked-questions) | TBD | | Maryland | [Shop Maryland Back to School](https://www.marylandtaxes.gov/divisions/comp/Shop_Maryland_Tax-free_Week/Tax-Free-Week-Faqs.pdf) | August 9—August 15 | | Connecticut | [Back to School](https://portal.ct.gov/DRS/Sales-Tax/Sales-Tax-Free-Week) | August 16—August 22 | #### 2025 For the year 2025, Stripe Tax supports the following sales tax holidays in the United States: | Region | Sales tax holiday | Date range | | -------------- | ------------------------------------------------------------------------------------------------------------------------------- | ----------------------- | | Puerto Rico | [Back to School](https://hacienda.pr.gov/publicaciones/carta-circular-de-rentas-internas-num-24-12-cc-ri-24-12) | January 10—January 11 | | Maryland | [Shop Maryland Energy Star](https://www.marylandtaxes.gov/divisions/comp/Shop_Maryland_Energy/Shop_Maryland_Energy_FAQs.pdf) | February 15—February 17 | | Alabama | [Severe Weather Preparedness](https://www.revenue.alabama.gov/sales-use/sales-tax-holidays/) | February 21—February 23 | | Missouri | [Show Me Green](https://dor.mo.gov/faq/taxation/business/show-me-green-tax-holiday.html) | April 19—April 25 | | Texas | [Emergency Preparation Supplies](https://comptroller.texas.gov/taxes/publications/98-1017.php) | April 26—April 28 | | Puerto Rico | [Hurricane Season Preparedness](https://hacienda.pr.gov/publicaciones/carta-circular-de-rentas-internas-num-25-10-cc-ri-25-10) | May 23—May 26 | | Texas | [Energy Star](https://comptroller.texas.gov/taxes/publications/96-1331.php) | May 24—May 26 | | Texas | [Water-Efficient Products](https://comptroller.texas.gov/taxes/publications/98-1018.php) | May 24—May 26 | | Mississippi | [Back to School](https://www.dor.ms.gov/sites/default/files/2025%20Sales%20Tax%20Holiday.pdf) | July 11—July 13 | | Alabama | [Back to School](https://www.revenue.alabama.gov/sales-use/sales-tax-holidays/) | July 18—July 20 | | Puerto Rico | [Back to School](https://hacienda.pr.gov/publicaciones/carta-circular-de-rentas-internas-num-25-13-cc-ri-25-13) | July 18—July 19 | | New Mexico | [Back to School](https://www.tax.newmexico.gov/news-alerts/tax-holiday/) | July 25—July 27 | | Tennessee | [Back to School](https://www.tn.gov/revenue/taxes/sales-and-use-tax/sales-tax-holiday/sth-traditional.html) | July 25—July 27 | | Florida | [Back to School](https://floridarevenue.com/backtoschool/Documents/2025/BTS_poster11x17.pdf) | August 1—August 31 | | Iowa | [Back to School](https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/iowas-annual-sales-tax-holiday) | August 1—August 2 | | Missouri | [Back to School](https://dor.mo.gov/taxation/business/tax-types/sales-use/holidays/back-to-school/) | August 1—August 3 | | Ohio | [General](https://tax.ohio.gov/help-center/faqs/sales-and-use-tax-sales-tax-holiday/) | August 1—August 14 | | Oklahoma | [Back to School](https://oklahoma.gov/content/dam/ok/en/tax/documents/resources/publications/infographics/SalesTaxHoliday.pdf) | August 1—August 3 | | South Carolina | [Back to School](https://dor.sc.gov/taxfreeweekend) | August 1—August 3 | | Virginia | [Back to School](https://www.tax.virginia.gov/virginia-sales-tax-holiday) | August 1—August 3 | | Virginia | [Energy Star and WaterSense Products](https://www.tax.virginia.gov/virginia-sales-tax-holiday) | August 1—August 3 | | Virginia | [Hurricane and Emergency Preparedness](https://www.tax.virginia.gov/virginia-sales-tax-holiday) | August 1—August 3 | | West Virginia | [Back to School](https://tax.wv.gov/Business/Pages/SalesTaxHoliday.aspx) | August 1—August 4 | | Arkansas | [Back to School](https://www.dfa.arkansas.gov/office/taxes/excise-tax-administration/sales-use-tax/2024-sales-tax-holiday/) | August 2—August 3 | | Texas | [Back to School](https://comptroller.texas.gov/taxes/publications/98-490/) | August 8—August 10 | | Massachusetts | [General](https://www.mass.gov/info-details/sales-tax-holiday-frequently-asked-questions) | August 9—August 10 | | Maryland | [Shop Maryland Back to School](https://www.marylandtaxes.gov/divisions/comp/Shop_Maryland_Tax-free_Week/Tax-Free-Week-Faqs.pdf) | August 10—August 16 | | Connecticut | [Back to School](https://portal.ct.gov/DRS/Sales-Tax/Sales-Tax-Free-Week) | August 17—August 23 | ## Report and file your taxes Stripe Tax has filing partners—Taxually, Marosa, and Hands-off Sales Tax (HOST)—to help automate your tax filing. These partners automatically sync your tax transaction data in real time, eliminating the need for manual data entry or file transfers. Learn more about [tax filing](https://docs.stripe.com/tax/filing.md). Stripe also provides reports of your completed tax transactions. Go to [Registrations](https://dashboard.stripe.com/tax/registrations) to access these reports. Learn more about [the different types of reports](https://docs.stripe.com/tax/reports.md). Stripe also provides reports of your completed tax transactions. Go to [Locations](https://dashboard.stripe.com/tax/locations) to access these reports. Learn more about [the different types of reports](https://docs.stripe.com/tax/reports.md). ## Marketplace tax liability A marketplace facilitator is an entity that contracts with third parties to promote their sales of property, digital goods and services by performing various functions to initiate and complete transactions. In the US, marketplace facilitator laws now exist in every state and territory with a sales tax, as well as the District of Columbia. These laws generally require the marketplace facilitator to collect and remit sales tax on behalf of the third-party sellers conducting business on the marketplace. As a marketplace facilitator, your compliance obligations, from registration requirements to reporting and filing, are determined by the specific laws of each region. ## See also - [Set up Stripe Tax](https://docs.stripe.com/tax/set-up.md) - [Register for sales tax, VAT, and GST](https://docs.stripe.com/tax/registering.md) - [Use Stripe to register](https://docs.stripe.com/tax/use-stripe-to-register.md)